PURPOSE  &

ELIGIBILITY

      Loan  against mortgage of immovable property located in  Urban/Semi-Urban Centres /Rural Areas( duly approved by the Bank) will be allowed to: 

i)        Employees of Central/State Govt./Schools/Colleges/Public Sector Undertakings (PSUs)/Reputed Corporates for meeting their personal needs.

ii)       Business Enterprises for meeting their business needs.

iii)      Schools/Educational Institutions provided the activity is commercially viable, cash flow is satisfactory and sufficient surplus is available for repayment of loan alongwith interest.

EXTENT OF LOAN

Minimum loan Rs.1 lakhs

Maximum loan Rs.25 lakhs

Income of spouse can be taken into consideration for determining loan amount.  In such cases, the facility should be allowed in the joint names.

Regular income from all sources can be considered provided sanctioning authority is satisfied with proof of income.

While considering term loan for personal needs, repayment should be fixed on a realistic basis, which should not normally exceed 50% of gross income.  However, while considering term loan for business needs, it should be ensured that income of the borrower/firm is sufficient to meet interest as well as instalments of term loan besides all their business expenses.

Security

Equitable mortgage of non-encumbered residential house/flat, commercial or industrial property (in the shape of building/Industrial Shed) situated in Urban/Semi-urban Centres and rural areas (duly approved by GM) in the name and possession of the borrower (including joint owners) i.e. either self-occupied or vacant.  However, in the following cases advance may  be granted to:   

a)     Sole-proprietorship firm against the immovable property owned by proprietor

and occupied by proprietor/proprietorship firm.

b)    Partnership firm against the immovable property owned by partner and occupied by same partner/partnership firm.

c)     Closely held company against the immovable property owned by promoter Director and occupied by the same promoter director/ closely held Co. In such cases personal guarantee of Promoter Director be obtained.

d)    Any individual partner against the immovable property owned / occupied by partnership firm.  In such cases, guarantee of the partnership firm i.e. owner be obtained.

e)     Advance may be allowed to proprietorship concern of H.U.F against the I.P. owned by Karta in his individual name and occupied by Karta/ Proprietorship concern of the H.U.F. Personal guarantee of the owner of the property be obtained.

f)      Term loan/OD facility may be allowed in favour of a trust against the IP owned by the trustee subject to the following:

i)                   Personal guarantee of the owner (Trustee) of the I.P. is obtained.

ii)                 To ensure that in what capacity trust is using the premises i.e. as a tenant/lessee or the whole property is given in trust.  However, the property shall be occupied by owner (trustee) and/or borrower (Trust) only.

iii)               The activity undertaken by the trust is commercially viable, cash flow is satisfactory and sufficient surplus is available for repayment of loan along with interest.

In a, b, & c above, IP may be owned by Proprietor/ Partner/Promoter Director jointly with their spouse. In such cases guarantee of spouse be also taken.

Repayment

Loan amount in case of term loan is to be repaid in maximum 72 equal monthly instalments.